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City of Scranton, Pennsylvania
Mayor James P.
Connors Population:
77,189 City Contact:
DESCRIPTION
OF PARTNERSHIP ARRANGEMENT The City of Scranton and Borough of Dunmore, joint operators of the Scranton
Sewage Authority, entered into a 5-year Partnership agreement with American
Anglian (an American Water Works Company), effective October 1999. American
Anglian is responsible for the operation, maintenance and management of the
City's 20-mgd wastewater treatment plant and 7 pump stations. The city was
facing a growing need for infrastructure improvement, and was experiencing a
lack of new development and slow growth in its tax base. The Partnership, a
sole-source agreement, was required to, and received, approval from EPA under
the process adopted by the Agency to implement Executive Order 12803.
ESTIMATED/ACTUAL
COST SAVINGS— Capital Upgrades, Consumer Rates,
and Fees
The Partnership agreement calls for $20 million in capital improvements over
the term of the agreement. American Anglian agreed to an annual operating cost savings for four years of
approximately $500,000, starting in the second year of the Partnership. Consumer
rates are not expected to increase over the 5-year Partnership term. American Anglian agreed to pay an $8 million concession fee to the City of
Scranton ($6.7 million), and the Borough of Dunmore ($1.3 million).
LABOR
RELATIONS The service agreement calls for American
Anglian to allow the 67 employees to remain Authority employees, but be managed
by American Anglian. The Teamsters Union represents the employees, and American
Anglian will honor existing union contracts. All non—union employees were
offered positions with American Anglian. |
J. Thomas Cochran, Executive Director
1620 Eye Street, NW, Washington, DC 20006
Telephone (202) 293-7330, FAX (202) 293-2352
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